Taxpayers get some relief
Feb 11 2009 14:01
Marc Hasenfuss
Cape Town - Proposed adjustments to personal income tax schedules announced by Finance Minister Trevor Manuel in his budget speech on Wednesday will provide relief of R13 6bn to individual taxpayers - providing relief mainly to lower and middle income earners (see tables below).
Taxpayers earning annual taxable income below R150 000 would receive 45% of the proposed R13 6bn relief. Taxpayers earning between R150 001 to R250 000 would receive 22% of the relief with those earning between R250 001 to R500 000 getting 21%. Higher income earners (+R500 000 annual earnings) would get just 12% of the relief.
Manuel also declared the tax-free income threshold next year will be R54 200 for taxpayers below the age of 65 and R84 200 for those over 65.
The tax booklet issued by Sars said real personal income tax relief was made possible by buoyant corporate income tax revenues "as a result of an improved culture of compliance and higher corporate profits."
Manuel said it was gratifying to note that there had again been excellent progress in expanding the number of registered taxpayers. "In view of progress in simplifying the tax return process and the waiver of the annual filing requirement for qualifying taxpayers, it is proposed that the current Standard Income Tax on Employees system should be
discontinued by 2010."
He appreciated that the administrative reforms, the adjustment to efiling arrangements and the construction of more effective communication channels between Sars and individual taxpayers were huge reform projects, but also sources of numerous personal inconveniences.
"But we are getting there, and these improvements will serve as a platform for improved fiscal integrity for
decades to come."
Taxable income
- R0 to R132 000
- R210 001 to R290 000
- R290 001 to R410 000
- R410 001 to R525 000
- R525 001 and above.
Tax rates
- 18% of each R1
- R23 760 + 25% of the amount above R132 000
- R67 260 + 35% of the amount above R210 000
- R109 260 + 38% of the amount above R410 000
- R152 960 + 40% of the amount above R525 000.
- Fin24.com
